Indian Bank, one of the biggest public sector banks in the country, has provided relief to its crores of customers.
The bank will no longer deduct charges for not keeping the required minimum balance. This means customers won’t be forced to maintain a minimum balance.
Indian Bank has announced that from 7 July 2025, it will completely remove the minimum balance charges on all savings accounts.
So, even if your account doesn’t have the fixed minimum amount, no penalty will be charged by the bank.
Customers in rural areas to benefit
This move by Indian Bank will benefit students, senior citizens, small business owners, and rural customers.
It will help more people become part of the banking system. The bank’s goal is to make banking simpler and more affordable for everyone.
What is MAB?
MAB or Minimum Average Balance is the average amount that customers must keep in their savings accounts every month.
If the balance falls below this level, banks usually charge a penalty. But now, this penalty will no longer be charged.
Canara Bank and PNB also made similar moves
Before Indian Bank, Canara Bank and Punjab National Bank (PNB) also removed the penalty for not maintaining the minimum balance in all their savings accounts.
Canara Bank was the first to end the rule of Average Monthly Balance (AMB) on all types of savings accounts. PNB has removed the MAB penalty for all savings accounts from 1 July 2025.
Loan customers also benefit
Indian Bank has not only given relief to savings account holders but also to loan customers.
The bank has reduced its 1-year MCLR (Marginal Cost of Funds Based Lending Rate) by 0.05% or 5 basis points.
The new MCLR is now 9.00% and is effective from today, 3 July 2025. This will lower loan interest rates and EMIs will also come down.
